Examlex
Some of the crowding out of private expenditures may come in the form of
Prevention Costs
Costs incurred to prevent defective units before they are produced. For example, reengineering products or production processes.
Appraisal Costs
Costs associated with the evaluation and inspection of products or services to ensure they meet quality standards.
Internal Failure Costs
Costs incurred when a defect is discovered before being received by a customer.
Variable Overhead
Costs that vary proportionally with the level of production or sales, such as utilities or commissions.
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